Dec 29, 2021

The future of communication: Conversational AI

Prianca Ravichander
5 min
Prianca Ravichander, Director of Partnerships and Ecosystems at Tecnotree talks fully automated conversational chat and customer service

Creating compelling digital chat experiences for customers is one of the major goals of digital transformation. Communication service providers (CSPs) are continuing to build digital ‘chat’ as part of their transformation processes. Quality conversational AI is a channel through which superior customer experience can be provided, at lower cost, as it revolutionises the way customers interact with service providers, with almost no human intervention. 

Conversational AI is a part of a machine's ‘brain’ that allows it to learn, understand, analyse and reply to human language. Intelligent virtual assistants filled with new talents have digitised human-machine interactions enabling them to do anything from playing music to deciphering language and conveying messages. And this potential, after years of poor-quality interaction with ‘traditional’ bots, hated by customers, is now with us.

The shift from chatbots to conversational AI platforms


The shift from traditional bots to advanced conversational platforms is a much needed natural evolution for organisations dealing with consumers. While traditional bots automate tasks to guide customers, AI chatbots use machine learning (ML) to understand the very intent and context of customers, providing human touch with balanced automation. 

These ‘intelligent’ chatbots will be indistinguishable from humans because they use statistical models of sentiment and predictive analysis.  According to IDC data, around 63 percent of CSPs are now investing in conversational AI to improve and optimise client experience.

The role of natural language understanding (NLU) in developing conversational AI


Conversational AI uses NLU, natural language processing (NLP) and ML to engage in customer conversations. NLU provides the building blocks to interpret human language and messages. It recognises patterns and establishes what the user is trying to say, even when a similar message is expressed in different ways. 

NLU is the understanding of the text given and classifying it into actual intents. ML determines the ideal reaction, and this reaction is transformed into comprehensible human language using natural language generation (NLG), another component of NLP.

Unlike conventional bots that depend upon sensitive keyword data, conversational AI chatbots use NLP and AI algorithms to process the dialogue in a conversation. It further uses this information to form better and more natural responses to customers’ concerns and queries. In simple words, conversational AI is bringing conversations to life.

Designing a conversational AI chatbot


Building a conversational AI chatbot has been challenging, especially the design. While designing a conversation, it's important to comprehend the capabilities of the AI brain and the human brain.

Key attributes of a conversational AI chatbot are:

  • Building a personality

Businesses first and foremost must decide on a chatbot’s ‘personality’ to complement their brands and values, in the same way they look at language and tone for all their other channels. They need to decide which services and products the ‘personality’ will deal with.

Conversational AI bots must simulate a real-life conversation by providing customers with a sense of freedom while communicating. They get better at this over time using  AI Markup Language, the background language which helps machines learn. They build their intelligence and personality further by processing customer data using ML algorithms. 

  • Understanding the core objective

One of the crucial aspects of chatbot design is the end goal for the bot. The actual purpose it is intended for must determine the design of the chatbot because this will ensure that it provides the right parameters for analysis during its learning process. This will mean it gets better and better at doing what it is actually supposed to do.

  • Create intent 

Creating intent requires building intelligence using customer data and common behavioural patterns. Once the customer intent is clear, conversational AI chatbots can ‘pop up’ to guide  customers using the knowledge they have gained to date. For example, if a customer is facing a problem in locating a product in an online marketplace, then an automated chatbot pop-up could prevent that customer from going to a rival business where it’s easier to locate what they want.

  • Contextual and meaningful conversations 

Chatbots can find it difficult to differentiate a reaction to a previous answer from a brand-new query, so contextualisation must be a part of the chatbot’s ‘brief.’ Anticipating responses using past experience is an obvious choice for the brief, whilst another approach is to investigate all the chatbot’s confusions and note the previous messages to anticipate the misunderstanding and to see if there is any link between them.

  • Performance metrics 

Measuring the KPIs of chatbots is vital in order to establish whether the user experience is working, particularly to:

  • determine if the chatbot is meeting the core purpose of its design
  • optimise the chatbot based on its goals, or changing goals
  • outline the best ways to drive audiences to the desired outcome

The Future of Communication: Conversational AI

Conversational AI and its applications are far deeper and more impactful than just chatbots. This technology can further be extended to establish intelligent and emotional connections between people and machines or between machines themselves.

  • Person to machine (P2M) communication

Person-to-machine communication has revolutionised many aspects of business, with embedded sensors, processors and connectivity software now in products from cars to kitchen appliances. In a bid to improve the P2M experience, people-friendly technology will pave the way towards a better user experience. Instead of people struggling to learn the evolving technologies as is sometimes the case today, technologies will evolve to understand people better and make their daily lives more comfortable.

With profound awareness of human psychology and what people want, an incredible experience can be achieved between humans and machines. 

  • ‘Digital humans’: the next step towards the future

Digital humans present a further advance to chatbots, with ‘physical’, ‘human’ representations on screens, bringing truly meaningful connections to the digital world. Besides the emotional connection, digital humans add values like scalability and speed and can always be available.

A study from Harvard Business Review has shown that emotionally connected customers are four times more loyal to brands and more likely to spend twice as much. This emotional connection between the CSPs and their customers is being taken to the next level with unfathomed potential.

Chatbots are absolutely the future of customer service and as they learn to work with us and make themselves available when we need them, will we be disappointed when we get through to the non-digital human?


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